AMA Research have published a new report on the UK Generator Hire market, reviewing market size, product and application trends, forecasts and supply structure in the diesel generator hire sector. Hiring of generators and support services is a substantial market and has experienced particularly good growth since 2012. In 2015, it is estimated that the market grew by around 7% in value terms, with a further 4% growth forecast in 2016.
The hire of generators is well-established in the UK and reflects the need for temporary, emergency or back-up power in a wide range of applications. Given this diversity of applications, the performance of the UK economy has a direct impact on the level of generator hire demand, reflecting trends in both construction and non-construction activity.
Demand tends to be relatively closely aligned to GDP, with short term fluctuations influenced by construction downturns and recovery, while other key factors impacting on demand include emergencies - in particular flooding in recent years - and major events, such as the Olympics, Glastonbury etc. In addition, rising power demand is a key driver in several major sectors, such as events and industrial, with more ‘critical’ applications also requiring more back-up support.
By volume, generators with a rating up to 20 kVA account for around a third of the market, with the 21-350kVA category accounting for a larger share. The latter are typically used in construction and events, as well as small offices, industrial units or hospital departments etc. Construction accounts for the largest ‘end-user’ share followed by the industrial sector, with infrastructure and events also important sectors for generator hire.
Within the overall generator hire market, ancillary products represent a significant value added element to the overall contract value, though requirements for ancillary products/services vary considerably depending on the location, application, additional elements required, generator size etc.
“The market has continued to grow in 2016 but, following the Brexit decision in June, growth rates are more cautious but underlying prospects remain strong” said Andrew Hartley, Director of AMA Research. “However, the underlying trend remains positive and there is substantial optimism in late-2016 within the generator hire sector for steady growth of around 4-5% which is expected to continue going forward.”
Contributing factors to steady growth include a combination of generally rising levels of electricity consumption, concerns over grid capacity and reliability, more infrastructure projects and developments in remote locations, such as wind farms and nuclear energy, while the growing events sector provides good opportunities for temporary power hire.
The ‘Generator Hire Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.